Archive for February, 2011
Long-Term Care Insurance – Facts Consumers Must Know Before Buying
There Are Ways To Reduce The Cost
Many of the articles you read discussing long-term care insurance use the term expensive when referring to this important protection. They fail to mention that there are many ways to obtain significant discounts today that can reduce the cost significantly; by between 20 percent and 50 percent a year. The industry’s annual Price Index that portrays what consumers can expect to realistically pay for suitable coverage. For someone age 55, a $100 Maximum Daily Benefit x 3 Year Benefit Period costs $772-per-year (assumes the individual qualifies for preferred health and spousal discounts). Good health discounts can reduce the cost by 10 percent a year. Choosing a plan that pays benefits for 3 years will be between 25 and 30 percent less expensive than one that pays for five years. Today, some companies offer discounts to married couples, even when only one spouse buys.
Individuals Need To Health Qualify
Few people understand the need to health qualify for long-term care insurance. And, this is one of the biggest mistakes people make; waiting too long. Nearly 14 percent of the individuals who took the time to apply for long-term care insurance between the ages of 50 and 59 were declined for health reasons last year (2007). That number increased to 23 percent for those between 60 and 69 and an amazing 45 percent for those applying between ages 70 to 79.
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Long-Term Care Insurance – Are Policies That Combine Life and Long-Term Care Insurance a Good Value?
The answer to this question is a resounding NO. These insurance policies are referred to by different names, Including Combination Policies, Bundled Policies, or Accelerated Death Benefit Policies.
The policy is usually a life insurance policy with an LTC insurance rider that can be used to pay for long-term care expenses. In other words, instead of having to die to receive benefits, the policy could pay benefits to cover the cost of the policyholder’s long-term care expenses.
These policies are sold as a gimmick to people who refuse to pay for insurance coverage they may never use. The sales pitch emphasizes that the policyholder can own insurance coverage, and always be assured that a benefit will be paid. The agent tells the prospective buyer If long-term care is not needed, at least your beneficiary will receive benefits from the life insurance portion of the policy.
Tags: benefit policies, insurance benefit, insurance portion, insurance rider, insurance value, life insurance benefits, life insurance coverage, life insurance policy, long term care insurance, term care insuranceRelated posts